The U.S. Securities and Exchange Commission (SEC) has initiated the "Crypto 2.0" initiative, aiming to establish a comprehensive and clear regulatory framework for crypto assets. Announced on January 21, 2025, this initiative includes the formation of a new Crypto Task Force led by Commissioner Hester Peirce. The task force's objectives are to provide clarity on the application of federal securities laws to the crypto asset market, recommend practical policy measures that foster innovation while protecting investors, and collaborate with various stakeholders to chart a new regulatory approach.
A significant aspect of the Crypto 2.0 initiative is the proposal to treat digital asset securities similarly to traditional securities by applying standardized transaction reporting requirements under the Securities Exchange Act. This includes addressing investor protection issues arising from off-chain trading activities, such as those conducted over-the-counter (OTC) or through decentralized platforms, which are considered high-risk and underregulated. Additionally, the SEC has proposed, in collaboration with the Commodity Futures Trading Commission (CFTC), the establishment of a Digital Asset Transaction Repository (DART). This centralized platform would serve as an authoritative source for all digital asset securities transactions, enhancing market transparency and oversight.
To coordinate efforts across federal agencies, the SEC supports the creation of a Presidential Cryptocurrency Task Force. This task force aims to streamline regulation and reinforce consumer protection in the crypto ecosystem by including representatives from the SEC, CFTC, Treasury, IRS, and other key departments.
The SEC has emphasized the importance of public engagement in this process and invites input from investors, industry participants, academics, and other interested parties. Contributions can be made through meetings, information requests, roundtable discussions, and written submissions via email
Overall, the Crypto 2.0 initiative represents a shift towards proactive and structured regulation in the digital asset space, aiming to balance innovation with investor protection and market integrity.